Business · Markets · 3 hrs ago
South Korean insurers draw interest as volatile markets lift defensive stocks
South Korean insurance stocks have held up during market swings, drawing attention as investors look for defensive shares.
The group includes companies such as Samsung Fire & Marine Insurance, DB Insurance and Samsung Life Insurance.
Higher interest rates can support insurers’ investment conditions, while their reputation as dividend-paying stocks can attract investors when markets fall.
Many insurers’ first-half results beat expectations, partly because they recorded fewer one-off costs related to actuarial assumptions.
But analysts expect some near-term earnings to fall short of market forecasts as weak investment income is not fully offset by improvements in long-term insurance results.
Dividend appeal has weakened, and uncertainty over rules affecting companies’ ability to pay dividends remains.
Analysts say investors may need to look beyond dividends and consider individual companies’ prospects; the underlying improvement in insurance profits remains a longer-term possibility.
South Korean insurance stocks have drawn attention as defensive dividend shares during recent volatile trading.
Higher interest rates have supported the sector’s investment conditions and attracted defensive demand.
Insurers’ first-half results mostly exceeded expectations, partly because fewer one-off actuarial costs were recorded.
Analysts say dividend appeal has weakened, while uncertainty over shareholder returns and near-term earnings remains.
They advise investors to consider company-specific factors alongside sector trends and dividends.
- Who
- South Korean insurers, including Samsung Fire & Marine Insurance, DB Insurance, Hyundai Marine & Fire Insurance, Hanwha General Insurance, Samsung Life Insurance and Hanwha Life Insurance.
- What
- Insurance stocks have attracted interest as defensive shares amid volatile markets, though analysts cite weaker dividend appeal and shareholder-return uncertainty.
- When
- The article was published on October 25, 2026, and discusses recent market movements and third-quarter performance.
- Where
- South Korea’s stock market.
- Why
- Higher interest rates and volatile markets have supported demand for defensive stocks, while improved first-half results and regulatory changes have also influenced investor interest.
This story does not have two clearly opposing sides.
Most insurers’ results showed year-on-year growth and exceeded expectations, partly because fewer one-off actuarial costs were recorded.
A managed-benefit system was introduced, raising expectations for positive regulatory effects on the insurance sector.
Insurance stocks performed relatively well against the market, with analysts citing earnings, interest rates and regulation as factors.
The KOSPI closed at 5,550.30, up 16.53 points, or 0.30%, from the previous day.
- KOSPI close on October 23
- 5,550.30
- Daily KOSPI change
- Up 16.53 points, or 0.30%
- Named non-life insurers
- Samsung Fire & Marine Insurance, DB Insurance, Hyundai Marine & Fire Insurance, Hanwha General Insurance
- Named life insurers
- Samsung Life Insurance, Hanwha Life Insurance
- Regulatory change
- Managed-benefit system introduced in July 2026
1 source
What people are saying
Insurers are dividend stocks, and if it is difficult to sharply increase dividends all at once, price should be considered first.
Most insurance stocks are currently in a range where both price and dividend appeal are low, so it is necessary to focus on industry conditions or company-specific catalysts beyond dividends.
Uncertainty over whether the rules related to the reserve for surrender value refunds continues, and expectations for dividend resumption have weakened compared with before.
Despite short-term earnings weakness, expectations for fundamental improvement in insurance profits remain valid.